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How to Apply for a Mortgage Online in Canada

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Are you looking to apply for a mortgage online?

With technological advancement, it’s never been easier to apply for and get approved for a mortgage right from your home, and without the need for a face-to-face meeting.

Some things you need to prepare before applying for a mortgage online, are as follows:

  1. A reputable credit score, and
  2. Proof of income

Can You Apply for a Mortgage Online?

The short answer to this question is yes.

The long answer to this question is also yes.

You can definitely apply for a mortgage online in Canada.

Applying for a mortgage online is a seamless process. You can check the best rates with online mortgage brokers like Breezeful, and lodge an application all online.

When Should I Get Pre approved?

Some people believe that it’s best to wait until they’ve found the home that they’d want to purchase. This is a backward approach as most realtors may not feel that it’s worth their time to show you houses if you don’t have yet a mortgage pre-approval.

In saying that, it is also important to make it a point that you can actually get a mortgage pre-approval by having a good to decent credit score, and a source of income.

You should apply for a mortgage pre-approval before you start your house-hunting.


Advantages of Applying for a Mortgage Online

There are many advantages of applying for a mortgage online as opposed to going out into the bank and filling out 20 pages worth of mortgage application paperwork.

Applying for a mortgage online saves you time and money since you can do it all right from the comfort of your home.

In most instances, all it takes is to fill out an online form to start the application process. Afterwhich, a mortgage broker will get in touch with you, and send out the necessary paperwork via email or have you fill out an online mortgage application form.

Disadvantages of Applying for a Mortgage Online

If you’re someone who still prefers talking face to face with a mortgage broker, your interactions with a mortgage broker are limited to phone and email conversations.

If you prefer talking with an offline mortgage broker, click here to contact our recommended mortgage broker.

The Process of Applying for a Mortgage Online

family in living roomWhen you apply for a mortgage online, you fill out an online application form and click submit.

A mortgage broker will ask you to submit other pertinent documents to support your application.

Your credit score is then checked and if it’s high enough, then your application is accepted. If your credit score is lower than the mortgage lender’s threshold, your application may get declined or you may be asked to get a co-signer to help you qualify for a mortgage.

In Canada, your credit score is one of the main deciding factors in whether or not your mortgage application is approved. The higher your credit score, the better chance you have of being accepted. On average, you will need to have a credit score of at least 680+ to secure a mortgage pre approval.

If you’re not monitoring your credit score yet, you can click here for a free Borrowell account.

Borrowell lets you monitor your credit score for free. You’ll get the same data you would with Equifax.

Click the banner below to open your Borrowell free credit monitoring account.

How Do I Start Applying for a Mortgage Online?

As mentioned, the first step in applying for a mortgage loan is to fill out an online form. You will then be assigned a mortgage specialist who will work with you in securing your mortgage loan.

Many lenders require at least 6-months of continuous income if you are working as an employee, and 2-years, if self-employed.

During the pre approval process, your online mortgage specialist may call you to discuss the details of your application.

At this time, you can ask about the terms and mortgage interest rate that you could qualify for.

As a borrower, you will be asked to submit documents that prove your income like your most recent Notice of Assessment, last two months’ payslips, or your bank statement.

The lender will then pull your credit score as part of the mortgage pre-approval process.

Key Steps in Appying for a Mortgage Online

mortgage application

1. Improve Your Credit Score

The first step involved in a mortgage pre approval, whether you’re applying online or with a mortgage broker, is to get your credit score on track. This, of course, goes without saying that you have to be gainfully employed.

2. Prepare the Money

Prepare between 5% – 20% downpayment, and around 2% for closing costs. (Most people only have a budget for a downpayment, and get surprised with closing fees).

3. Check Mortgage Rates

Second, it’s a good idea to check on the mortgage rate. This is when working with a mortgage broker makes the most sense, instead of just walking in and lodging an application with a bank.

An experienced mortgage broker can help you qualify for the best rate based on your credit score and financial situation.

4. Get Pre Approved

Once you’ve laid-down the prep work, it’s important to apply for a pre-approval. You can apply online here.

5. Welcome Home

Once, you’re pre approved; you have 90 days of guaranteed interest rate. Afterwhich, your interest rate may change.

Househunting is the exciting part. Hope you’ll find the home that you’re comfortable with and is within your budget.

What Documents Do You Need for a Mortgage in Canada?

You will need to provide a few documents as part of the mortgage application.

Lenders will need to know where you work and if your employer is likely to continue paying you reliably.

Your lender will also want to see records that show that you are up to date with your mortgage payments if you’re an existing homeowner. Missed mortgage payments may be a red flag to most mortgage lenders.

You will also need to submit your personal information, and proof of identity, and address, along with other pertinent documents:

  • Your identification (driver’s license)
  • Credit Report (Get yours here for free)
  • Proof of Income (6 months for employed, 2-years for self-employed)
  • Latest Notice of Assessment.

Tips on How to make Mortgage Application Easier and Faster

first time homebuyer

Be Mortgage Ready

Most Canadians, don’t have a clue as to whether or not they can get pre approved when they apply for a mortgage.

You can get a good idea of your pre approval status by making it a point that your credit score can support a mortgage qualification. You can also check how much you can qualify for by using this mortgage qualifier tool.

Be Financially Ready

Borrowing money for the downpayment and to pay the closing fees isn’t a good idea.

When buying a house with a mortgage, you’re entering into a loan agreement. You have to be financially prepared to become a “homeowner” by saving enough for your downpayment, and closing fees.

Improve Your Credit Score

If you have credit issues, speak with your mortgage broker or bank to find out if there are any ways to fix these issues so that you can get a better interest rate. These can include items such as fixing errors on your credit report, paying off old bills, and the like.

Properly Fill-out Your Online Application

Take time to fill out the application properly and double-check for errors before submitting it. It will be much more time-consuming if you have to correct mistakes later on in the process.

Apply As Soon as You're Ready

The sooner you apply for a mortgage, the sooner it will be approved or denied and all of your documents can be processed in order to close on the house as soon as possible.

Questions to Ask Yourself Before Committing to a Mortgage

How long does it take for a mortgage application to be approved?

apply for a mortgage online 1

Depending on your financial situation, and the completeness of your application. A mortgage application can take between a few days up to two weeks.

The mortgage company will need to do a credit check, a lender’s approval, and an appraisal. If you’re approved for your loan, then the lender will send out an appraiser who will write up a document that explains why they think the house is worth what it’s selling for.

Conclusion: How to Apply for a Mortgage Online

Applying for a mortgage online is the new way to go!

With just an internet connection, you have 24/7 access to your lender and may get approved in as little as two days. You’ll be able to save time by skipping bank trips.

To apply for a mortgage loan online in Canada, you need to prepare the following:

1) A decent credit score

2) Your Social Insurance Number (SIN), and government-issued ID;

3) Proof of income if you are employed (payslips, Notice of Assessment);

4) Official documents for your citizenship, residency, and employment status; 5) Proof of assets (bank statements, stocks, bonds);

6) A credit report from a reputable company like Equifax or TransUnion. Sign-up for Borrowell to monitor your credit score for free.

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